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Environmental Factors

Environmental Factors

Environmental Factors

You work at TalkBox, a company that develops and supports software solutions for workforce collaboration. Its vendors include a number of multinational corporations in English-speaking companies. Talkbox is considered a TMT (Technology, Media, and Telecom) business. Following recent and rapid growth, TalkBox is expanding further into the global marketplace.

In order to prepare the business for success in moving into Japan, your supervisor, Jim Novik, has asked you to write an email to the TalkBox leadership team that includes a PESTLE (political, economic, social, technological, legal, environmental) analysis. After identifying PESTLE factors, explain the implications of each item. In addition, classify the factors according to importance, and recommend a strategy model for entering the market.

TalkBox logo in green and orange letters



To support Talkbox’s expansion efforts, your manager has tasked you with crafting an email for the leadership team that addresses the management considerations of entering the Japanese TMT market. Make sure your email includes the following:

· A completed PESTLE analysis of the TMT market in Japan. Be sure to include positive and negative aspects of these elements. Include 1–2 factors for each of the following items.

· P: Political

· E: Economic

· S: Social

· T: Technological

· L: Legal

· E: Environmental

· A determination of the potential implications and significance of current economic conditions on market entry. This includes the different types of markets, as well as how they specifically relate to the TMT market.

· Classify the different factors according to their potential impact on TalkBox:

· Unimportant

· Important

· Very important

· Extremely important

· In addition, explain the implications of each factor for TalkBox.

· What effect does it have overall?

· Is it positive or negative?

· Is it a short-term or long-term effect?

· Relevant international trade policies, such as trade agreements, tariffs, and non-tariff barriers.

· Conclude your email with a rationale for your top choice of a strategy model to use in entering the market. Be sure to include the following:

· Relevant strategies

· Logical reasoning for your proposed model


What to Submit

Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following:

Email The entire email should be 1–2 pages long, including the PESTLE analysis and the final recommendation. Consider incorporating the analysis into the email or, instead, composing a brief email with the final recommendation and attaching relevant documentation (e.g., a flowchart) of your analysis.


Supporting Materials

The following resources may help support your work on the project:

Citation Help Need help citing your sources? Use the CfA Citation Guide and Citation Maker.

Document:  Graphic Organizer This organizer helps ensure that all elements of the project are completed and stem from one another.


Foreign Market Risk: (Section 2.1)

As you read through this section, consider the following questions:

· What are the most common international trade theories?

· How can a business benefit from advantages in its home country to support expansion into a foreign market?

· How can friendly trade relations make it easier to conduct business between two countries? (Section 8.1 & 8.2)

As you read material, consider the following questions:

· What is a PESTEL analysis, and why is it critical to the decision to expand internationally?

· What are traditional entry modes for international expansion?

· What is the CAGE model of marketing assessment?

As you read this article, consider the following questions:

· How can a PESTLE analysis serve as a generic orientation tool for an organization?

· How can a business gather the information necessary to conduct a PESTLE analysis?

· What is a SWOT analysis, and how can it be used in conjunction with a PESTLE analysis?

As you read this article, consider the following:

· How does a family ownership structure differ from a publicly traded stock ownership structure?

· How can a family ownership structure differ from a traditional publicly traded stock ownership structure when making the decision whether to expand into a foreign market?

· What impact can a business’s style of management have on the decision to expand overseas?

· Typically, how do family-owned businesses make the decision to expand into a foreign market?

As you read this article, consider the following:

· How important is having prior international experience when deciding to expand a business abroad?

· How does firm size impact how easily a company can expand into a foreign market?

· What role does competition play in making the decision to expand overseas?

As you watch the video, think about the following:

· What can a company do to construct a business strategy that will work in other countries if it chooses to expand internationally?

· How can a company balance the risk of expanding internationally with the potential economic benefit of selling abroad?

· How can a company determine which country or region offers the best opportunity for its business offering?

After reviewing two company PESTEL guides, consider the following:

· When expanding abroad, how does globalization impact potential market share?

· What impact might the current state of the economy have on the decision to enter an international market?

· How might potential demographic changes influence the decision to expand abroad?

Current Economic Conditions: (Section 4.0 & 4.4)

As you read these sections, consider the following questions:

· What is an emerging market, and which countries are in the emerging market stage of their economic development?

· Why can it be easier to expand into an emerging market than into an already heavily developed country?

· What are the BRIC countries, and what makes them unique among all global emerging markets?

As you read through this section, consider the following questions:

· Why was the European Union (EU) originally created?

· What criteria determined who could join the EU?

· How do the various parties in the EU interact with one another?

· What are the economic benefits that can accrue from countries having free trade policies and open borders?


Read the following sections:

· Introduction

· Synopsis on MINT

· Literature Review

This Shapiro Library reading discusses Mexico, Indonesia, Nigeria, and Turkey (MINT) and their emerging economies.

As you read these sections, consider the following questions:

· What do Mexico, Indonesia, Nigeria, and Turkey have in common economically?

· How effective are trade and economic alliances among countries that are not geographically close to one another?

· What differentiates an emerging market from a fully developed one?


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